The net loss per share was still wider than analysts were expecting.
Air Canada has been unprofitable since early 2020. Postmedia'sGavin Young.
The photo was taken by Gavin Young.
Air Canada reported a net loss of $550 million in the first quarter of 2022, slightly worse than the previous quarter, as rising fuel costs and the war in Europe offset gains from growing demand for travel.
The net loss per share was larger than many analysts were expecting. Stephen Trent of Citigroup Global Markets told his clients that the results were mixed and that Air Canada appeared to be taking helpful actions to boost revenue.
Air Canada's shares were trading around $23.25 at 11 a.m. Toronto time.
As travel restrictions ease, the company is bouncing back from the blow it suffered from the Pandemic, but it is a far cry from the net income it reported in 2019. Air Canada has been operating at a loss since early 2020 and has a shortfall of $3 billion in 2021.
She said on the call that it would not be possible to reach pre-pandemic levels this summer. The airline will be 20 per cent below capacity this summer.
Air Canada has had bad press recently. In November of last year, CEO Michael Rousseau made headlines when he gave a speech in English and French to the Montreal Chamber of Commerce. He told reporters that he didn't need to learn the language in Montreal because he already knew it. Rousseau promised to learn French.
The incident was not mentioned on the analyst call. The Omicron variant, the conflict between Russia and Ukraine, and rising fuel prices were attributed to the ongoing operating losses.
Amos Kazzaz, executive vice president and chief financial officer, said that the rising cost of fuel would be counteracted by increasing fares.
The airline's executive team remains optimistic that performance will continue to improve as travel restrictions in Canada continue to ease. Revenues are growing. Rousseau said that the network is being restored.
The tides may be turning for the airline. The company flew over 100,000 customers in a single day for the first time since March 2020. Kazzaz said that the company is making changes to its fleet. Air Canada Cargo is expanding and will get two new Boeing 767-300 freighters in 2022.
Rousseau said that the long-range plan was for yields to come back to 2019.
Email: mcoulton@postmedia.com
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